The Assembly Appropriations Committee on Thursday blocked a closely watched bill that would have required lawmakers to study and review a controversial new electricity rate recently approved by the Newsom administration.
Committee members did not discuss their concerns about the bill, known as AB 1999, or the reasons for their decision to stop the bill from moving forward.
In a roll call, two Democratic committee members — Timothy Grayson of Concord and Gayle Pellerin of Santa Cruz — voted in favor of the bill. The remaining members of the 15-member committee retained voting rights.
Some lawmakers said this week they received more calls from constituents about the new $24.15 monthly electric bill and AB 1999 than any other topic.
The state Public Utilities Commission, led by Newsom appointees, Approved charges last week. In return for paying the new fee, consumers will receive lower rates per kilowatt-hour of electricity used.
Newsom’s administration says the new billing structure is needed to encourage more people to buy electric vehicles and replace gas appliances in their homes, which would reduce the use of fossil fuels that warm the planet.
With California already having the second-highest electricity bills in the country, the new charges outraged people across the state.
A coalition of more than 250 consumers and other groups has been protesting the new monthly charges, saying power bills for millions of Californians who live in apartments or small homes that use very little electricity will be increased to subsidize those who use less electricity. Someone with much more power.
They point to a study that found 3.9 million families would pay $65 to $225 more per year under the new billing structure.
People who install solar panels on their homes will also pay a monthly fee.
The new fees affect customers of investor-owned power companies, including Pacific Gas & Electric, Southern California Edison and San Diego Gas & Electric. It does not apply to customers of the Los Angeles Department of Water and Power or other municipal utilities.
The utility commission said electric companies would not receive additional revenue under the change. The commission said the companies would receive an amount from monthly charges equal to the amount they would lose by lowering their per-kilowatt-hour rates.
But critics point out that Newsom’s 2022 bill would impose new monthly fees, removing a $10 cap on such fees that has been in place since 2013. There was little debate within a few days.
In January, Thousand Oaks Democrat Jacqui Irwin introduced AB 1999 to undo much of Newsom’s 2022 bill.
The bill faces a tough road. Last month, parliamentary leaders halted the legislation before it even got a hearing.
Owen subsequently amended the bill in an attempt to revive it.bill Passed first committee hearing Wednesday.
The revised bill would require a study of customers’ bills in 2028 to determine who paid more or less under the new rate structure. The bill says the Legislature could repeal the monthly fee if it found it was not operating as the Public Utility Commission intended.
Irving’s bill would also prevent utilities from raising fixed charges more than the rate of inflation.
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